Taiwan's Hon Hai Pulls-Out of Huawei Deal After Government Warning

Advertisement
By Agence France-Presse | Updated: 2 July 2014 22:00 IST

Taiwan tech giant Hon Hai said on Wednesday it has pulled out of a deal to buy 4G equipment from Huawei after the government warned that the Chinese company posed a national security threat.

Taiwan raised those concerns in March after Hon Hai announced the $178 million deal, saying telecom equipment purchased from Huawei could be used for cyber espionage.

Advertisement

Ambit Microsystems, a company affiliated with Hon Hai, had applied for permission from the telecom regulator to import Huawei equipment after it won a 4G spectrum license.

But Ambit on Monday pulled out of the deal with Huawei, which offers cheaper products than rivals such as Nokia.

Advertisement

(Also Read: Hon Hai, Pegatron on China Hiring Spree for Next iPhone: Reports)

"Ambit respects the cautious position of the government regarding national security, so we resubmitted our application on June 30 excluding any mainland-manufactured equipment," the company said in a statement.

Advertisement

Shenzhen-based Huawei has for years faced accusations that it is a potential security Trojan Horse due to perceived close links to the Chinese government, which it denies.

It has been barred from involvement in broadband projects in the United States and Australia over espionage fears.

Advertisement

"Authorities have voiced national security concerns about Huawei," Liang Wen-hsin, a spokesman for telecom regulator National Communications Commission (NCC), told AFP.

Taiwan and former rival China, split in 1949 at the end of a civil war, are still technically at war despite eased tensions since 2008 after Ma Ying-jeou of the Beijing-friendly Kuomintang party came to power. He was re-elected in January 2012.

(Also Read: EU and South Korea to Jointly Research 5G Mobile Wireless Technology)

Huawei was founded in 1987 by Ren Zhengfei, who was an engineer in the People's Liberation Army.

Besides network equipment, it has moved into consumer electronics and is the world's third-largest seller of smartphones.

 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Further reading: 4G, Hon Hai, Huawei, Internet, Telecom
Advertisement

Related Stories

Popular Mobile Brands
  1. Samsung Galaxy S27 Ultra Could Support Updated Versions of Samsung Log, APV
  2. OnePlus 16 Launch Officially Teased; Display Details Revealed
  3. ColorOS 17 Introduced With the New Fluid Design: See Release Schedule
  4. Lenovo Legion 5i, Legion 5a (2026) Series and LOQ 15AHP11 Debut in India
  5. Vivo X500 Pro Series to Debut With This New Chipset
  6. Realme Buds T500 Pro Harry Potter Edition Set to Launch on This Date
  1. Hideo Kojima Confirms Bill Skarsgard Will Play Lead Role in Physint, Shares Development Update on OD
  2. WhatsApp Reportedly Rolling Out New Search Shortcut for Chats and Channels on iOS
  3. Samsung Galaxy S27 Ultra Could Get New Image Processing for More Natural Photos: Leak
  4. Samsung Galaxy S26 Price in India Tipped to Increase by Rs 12,000: Check Details
  5. Realme Buds T500 Pro Harry Potter Edition India Launch Date Announced: Here's What You Need to Know
  6. Dell XPS Googlebook Launch Seemingly Confirmed as Laptop Appears in an Official Document
  7. Oppo Heartball AI Wearable to Launch Later This Year With Up to 24 Hours of Battery Life: Report
  8. Meta Luna Smart Glasses Without a Camera Said to Be in the Works; Launch Timeline Tipped
  9. OpenAI Details Six Cases of AI Models Hiding Mistakes, Using Exposed API Keys and Sharing Files
  10. Snap Introduces Specs Intelligence to Anticipate Tasks Across iPhone, Mac and AR Glasses
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.